NuScale Power (SMR) has been in the spotlight after several major financial institutions, including Bank of America, issued downgrades because of concerns around high capital intensity and execution risks for the company’s upcoming projects.
See our latest analysis for NuScale Power.
NuScale Power’s year has been a rollercoaster, with fresh financing concerns and major shareholder sales keeping volatility high, even as the company hits commercialization milestones like the ENTRA1 Energy partnership with the TVA. Despite the recent turbulence and sector downgrades, NuScale has managed a 1.95% total shareholder return over the past year. This suggests that investors remain cautiously optimistic about its long-term prospects as momentum ebbs and flows.
If recent nuclear headlines have you scanning for fresh ideas, now is the perfect moment to see what’s happening in other advanced energy and infrastructure names. Discover fast growing stocks with high insider ownership
With valuation concerns, execution risks, and future dilution all weighing on the share price, investors have to ask: Is NuScale undervalued at these levels, or is the market already reflecting all the potential growth ahead?
The most widely followed narrative sets NuScale Power’s fair value at $41.69, notably above the recent close of $36.61. This gap highlights optimism on commercialization, even as skeptics focus on execution risks and timelines.
Major upside potential is highlighted from the landmark TVA and ENTRA1 Energy partnership to deploy up to 6GW of NuScale SMR capacity, signaling commercial traction and technology validation. Bullish analysts cite the growing global and domestic demand for always-on, carbon-free baseload power, backed by policy tailwinds and an increasing need from sectors like data centers and AI.
Curious what’s fueling this bullish stance? The secret lies in aggressive growth forecasts, expectations of industry-leading operating margins, and a future valuation multiple that stands out in the sector. Want the details behind these ambitious numbers? Explore which surprising assumptions drive this price target and how they could reshape NuScale’s valuation story.
Result: Fair Value of $41.69 (UNDERVALUED)
Have a read of the narrative in full and understand what’s behind the forecasts.
However, ongoing delays in power purchase agreements and funding uncertainties could quickly shift sentiment and challenge the optimistic growth case for NuScale Power.
Find out about the key risks to this NuScale Power narrative.
Source: NuScale Power (SMR): Exploring Valuation as Analyst Downgrades and Shareholder Sales
